Global sales of fully electric and plug-in hybrid vehicles rose 26% year-over-year in September 2025, reaching a record 2.1 million units, according to market research firm Rho Motion. The surge was fueled primarily by strong demand in China and a last-minute rush in the U.S. ahead of the expiration of federal EV tax credits.
China remained the largest contributor, accounting for approximately two-thirds of global EV sales with 1.3 million units sold. North America also set a record as U.S. consumers moved quickly to secure incentives before they expired, while Europe hit new highs thanks to incentives in Germany and strong demand in Britain, bolstered by Tesla’s rollout of a lower-cost Model Y.
By the numbers:
- Global: 2.1 million EVs (+26% YoY)
- China: 1.3 million vehicles
- Europe: 427,541 vehicles (+36% YoY)
- North America: 215,000 vehicles (+66% YoY)
- Rest of the world: 153,594 vehicles (+48% YoY)
Charles Lester, Rho Motion’s data manager, noted, “With the federal incentive gone, U.S. demand is expected to drop sharply in the final quarter of the year.” Some automakers, including General Motors (GM) and Hyundai, are attempting to mitigate the impact by offering discounts and tapping dealer inventories, but production is generally being scaled back.
The data underscores the critical role of policy incentives in driving EV adoption globally, highlighting how markets in China, North America, and Europe continue to lead the transition toward electrified transportation.